Monday, October 8, 2012

FBI investigates 'dead' Broadway investor hoax


Dress rehearsal for Rebecca the musical, 2006
The plot thickens … dress rehearsal for the musical Rebecca at Raimund theatre, Vienna, in 2006. Photograph: Stephan Trierenberg/AP
The theatrical investor whose "death" caused the cancellation of a major Broadway musical was fabricated, the show's producers announced this week.
A figure called Paul Abrams, described as a prominent South African businessman, had supposedly pledged $2.5m towards a musical version of Daphne du Maurier's gothic novel Rebecca, and was expected to raise a further $2m from three other investors.
However, lead producer Ben Sprecher was forced to cancel the production last Monday, the day rehearsals were due to start, following what was described as Abrams's death from malaria on 5 August after a trip to Africa. The $12m show had been scheduled to open on 18 November at the Broadhurst theatre in New York.
Sprecher had been connected with Abrams by Mark Hotton, a Long Island stockbrocker, but had never met or spoken directly to him. Two days after the production was shelved, it emerged that Hotton had been the subject of an unrelated fraud investigation. Hotton later filed for bankruptcy.
This week, Sprecher's lawyer announced the findings of an inquiry into the production's funding. Ronald Russo said: "Following an extensive search last week, I can now confirm that there is no evidence whatever that Paul Abrams or any of the other three investors brought to this production by Mr Hotton ever existed."
The production's cancellation, which came after Sprecher failed to find alternative funds, has affected more than 100 members of the cast and creative team.
It's not the first time that this version of Rebecca has come a cropper. The musical, which premiered in Vienna in 2006, was reportedly due for a West End run at the Shaftesbury theatre in 2011, but was cancelled due to technical problems.
Hotton's lawyer, Gerald Shargel, told the New York Times: "My client met these people and tried to raise money in good faith and the bottom line is that he was completely duped. If they were fictitious, what was in it for Hotton?"
He continued: "All these claims of fraudulent conduct are grossly and absurdly exaggerated and there has never been an adverse verdict returned against him."
The case is the subject of a criminal investigation by the FBI, though no charges have yet been made.


FBI investigates 'dead' Broadway investor hoax | Stage | guardian.co.uk